CSI and Hawk:AI Partner on AI-Powered Anti-Fraud and AML Tools


CSI and Hawk:AI have partnered on artificial intelligence (AI)-powered tools to combat financial crimes.

The new collaboration adds Hawk:AI’s anti-money laundering (AML) and fraud prevention technology to CSI’s latest end-to-end FinTech and RegTech products, the companies said in a Tuesday (March 28) press release.

“Rules and regulations are not necessarily enough to stop fraud and money laundering,” CSI Chief Product Officer Allison Maddock said in the release. “To avoid human error and employees that spend hours manually monitoring these concerns, all organizations need to consider AI-backed fraud protections and AML support.”

Consumers lost $8.8 billion to various fraud schemes last year, a figure that was 30% higher than the previous year’s tally, the Federal Trade Commission (FTC) reported in February.

The FTC said that the data came from more than 5 million consumers and spanned fraud reports, identity theft reports and other complaints.

PYMNTS research found that 62% of all financial institutions experienced an increase in financial crime, and 58% noticed increasing sophistication in the financial crimes they experienced.

In addition, 25% of FIs with $500 billion or more in assets see fraud’s new sophistication as a barrier to data security, and 95% of AML executives highly prioritize innovative solutions for fighting fraud, according to “The State of Fraud and Financial Crime in the U.S.,” a PYMNTS and Featurespace collaboration.

One of the products resulting from CSI’s partnership with Hawk:AI is WatchDOG Fraud, which uses transaction data, IP addresses and device IDs to detect and prevent fraud in real time and across all channels and payment methods, according to the press release.

Another new product, WatchDOG AML, leverages the same AI and machine learning (ML) capabilities to analyze customer behavior, automatically create suspicious activity alerts (SARs) and strengthen AML programs for banks and nonbank financial institutions, the release said.

“We believe that cutting-edge, real-time financial monitoring technology can deliver the change needed to fight today’s sophisticated fraud and money laundering,” Hawk:AI CEO and Co-founder Tobias Schweiger said in the release. “Operating a safe financial ecosystem requires FinTechs, banks and other organizations to deploy technology-backed tools and infrastructure that accurately inform and alert institutions to impending concerns.”